Vocabulary for discussing international trade, cross-border exchange, cultural interconnection, and global economics.
interdependence
The dependence of two or more people or things on each other.
Band 7+ example
“Economic interdependence between nations means that a financial crisis in one country can have far-reaching global repercussions.”
Common collocations
Common mistake
Countries have interdependence because they need each other.
The growing interdependence of national economies underscores the need for coordinated international policy.
liberalisation
The removal or loosening of restrictions, typically in economic or political systems.
Band 7+ example
“Trade liberalisation has stimulated economic growth in many developing nations, though its benefits have not been evenly distributed.”
Common collocations
Common mistake
Liberalisation of trade helps countries make more money.
Trade liberalisation has yielded significant economic benefits, yet it has also exacerbated inequality in certain regions.
multinational
Operating in or involving several countries; a company that operates across national borders.
Band 7+ example
“Multinational corporations wield considerable economic influence, often exceeding the GDP of small nations.”
Common collocations
Common mistake
Multinational companies are very big and rich.
The dominance of multinational corporations in global markets raises questions about regulatory oversight and tax fairness.
protectionism
The practice of shielding a country's domestic industries from foreign competition by taxing imports.
Band 7+ example
“While protectionism may safeguard domestic jobs in the short term, it often leads to higher consumer prices and reduced competitiveness.”
Common collocations
Common mistake
Protectionism helps a country's own businesses.
Protectionist policies may provide temporary relief to domestic industries but risk triggering retaliatory trade measures.
tariff
A tax or duty to be paid on a particular class of imports or exports.
Band 7+ example
“The imposition of tariffs on imported goods can escalate into trade wars that ultimately harm consumers in both countries.”
Common collocations
Common mistake
The country put tariff on foreign products.
The imposition of punitive tariffs has strained diplomatic relations and disrupted global supply chains.
outsource
To obtain goods or services from an outside or foreign supplier, especially in place of an internal source.
Band 7+ example
“Companies that outsource production to countries with lower labour costs often face criticism regarding worker exploitation.”
Common collocations
Common mistake
Many companies outsource their work to other countries.
The decision to outsource manufacturing operations must weigh cost savings against ethical and reputational considerations.
bilateral
Involving two parties, especially countries.
Band 7+ example
“Bilateral trade agreements between nations can foster economic cooperation while preserving each party's regulatory sovereignty.”
Common collocations
Common mistake
The two countries made a bilateral to trade with each other.
Bilateral negotiations between the two nations resulted in a comprehensive free trade agreement.
exploitation
The action of treating someone unfairly in order to benefit from their work; also the utilisation of resources.
Band 7+ example
“The exploitation of cheap labour in developing countries remains one of the most contentious aspects of economic globalisation.”
Common collocations
Common mistake
Exploitation of workers in poor countries is very bad.
Stringent international labour standards are necessary to prevent the exploitation of vulnerable workers in global supply chains.
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